Crucial Facts You Should Know About The Controversial 1MDB-Tabung Haji Land Deal

MPs urge Tabung Haji to keep TRX land to gain greater profits

Image via Penaminang

12 May: No reason to withdraw savings from Tabung Haji as deposits are guaranteed by the government, says PM Najib

Image via The Malaysian Insider

Meanwhile, the police are also investigating allegations of mismanagement and power abuse in the 1MDB-Tabung Haji land deal

Image via Choo Choy May / The Malay Mail Online

Last week, when the controversy broke out, UMNO Youth member Saifuddin Abdullah had pointed out that the deal could have been tainted by a conflict of interest, as three key figures in Tabung Haji are also directly involved with the debt-ridden 1MDB

Image via Norman Goh / Malaysiakini

11 May: Tabung Haji will make millions overnight from selling 1MDB land, says Najib

Image via MyNewsHub

On 9 May, Lembaga Tabung Haji announced that they will putting the TRX land they had acquired from 1MDB at the behest of the Prime Minister.

According to chairman Abdul Azeez Abdul Rahim, three firms had already made their offers and the funds board is expected to bring in at least RM5 million in profits when the deal is finalised.

Image via Saw Siow Feng / The Malay Mail Online

However, it has been reported that that Kumpulan Wang Amanah Pencen (KWAP) is set to buy the land at a price that is more than 15% lower than what Tabung Haji had paid for to house its new headquarters

8 May: On 5 May, a blog called "The Benchmark" released a set of documents detailing an alleged land acquisition deal involving Lembaga Tabung Haji and the 1Malaysia Development Board (1MDB)

Image via The Benchmark

While it is not strange for Tabung Haji to be acquiring land as part of its investment plans, the controversy arises from the fact that the pilgrims fund board is purchasing plots of land from the debt-ridden 1MDB

Lembaga Tabung Haji **facilitates savings for its contributors' pilgrimage to Mecca through investment in Shariah-compliant vehicles**.

Meanwhile, 1MDB has been in the spotlight for all the wrong reasons as of late. The strategic development company, which is wholly-owned by the Malaysian government, had **accumulated debts totalling to RM42 billion** in addition to Sarawak Report's expose on Penang-based financier [Jho Low](http://says.com/my/news/11-answers-that-will-help-you-understand-the-big-1mdb-and-jho-low-conspiracy) having allegedly siphoned US$700 million (RM2.5 billion) from a joint venture between 1MDB and Petrosaudi.

1MDB is currently involved several high-profile projects such as the Tun Razak Exchange, Tun Razak Exchange's sister project Bandar Malaysia and the acquisition of three Independent Power Producers.

The blog claimed that the pilgrims fund board had purchased two plots of land at the Tun Razak Exchange (TRX) for an unreasonably high price of RM772 million using depositors' money in an attempt to bail out the "scandal-ridden" 1MDB sovereign fund

Image via The Malaysian Insider

Located in the heart of Kuala Lumpur, the Tun Razak Exchange (TRX) is a 70-acre development project helmed by 1MDB Real Estate Sdn. Bhd. which has been touted as an international financial hub featuring office spaces which will be complemented by world-class residential, retail and leisure spaces. Phase 1 is scheduled to be completed in 2017/2018.

Based on "insider" information, it was also alleged that the deal had been expedited and approved within two weeks, with Tabung Haji having paid for the first plot of land in full to 1MDB despite a high risk assessment

Image via The Benchmark

The post further revealed that Tabung Haji may be paying an average of "48 to 65 times more" for both plots of land as compared to the amount 1MDB had paid for the government-owned TRX land in 2011

According to the leaked documents, Tabung Haji was believed to have paid **RM194 million (RM2,860 per square feet) in full for the first plot of land** to develop a block of serviced apartments and is expected to pay **RM578 million (RM3,900 per square feet) in cash for the second** to house an office building called Signature Tower.

1MDB is said to have acquired a large section of government-owned land in TRX for a mere **RM60 per square feet** back in 2011.

Image via The Benchmark

You can read the entire blog post [here](http://thebenchmark0.blogspot.com/).

Tabung Haji chairman Datuk Seri Abdul Azeez Abdul Rahim had initially denied the purchase when he was asked about it on Twitter

Image via Twitter @azeezputera

However, Deputy Group Managing Director and CEO Datuk Johan Abdullah later confirmed that a piece of land had been acquired at a discounted price of RM188.5 million instead of RM194 million as was claimed in the blog post

Image via New Straits Times

Johan also denied the purchase of the second plot of land known as Signature Tower (Phase 2), explaining that the offer did not match their risk-return requirements and that information from proposal papers do not reflect their final decision

In defence of the land purchase, Johan maintained that it was not a bailout for 1MDB. Rather, it was a sound investment that was made because they wanted "a piece of the action in the development".

Image via Tun Razak Exchange website

Following that, Azeez apologised for the "miscommunication" from his denial tweet, saying that he is actually denying the blog post's claims that Tabung Haji had purchased two plots of land for RM722 million

Tabung Haji has since made a police report in regards to the leaked documents. Police will be investigating the case under the Official Secrets Act.

Image via Neville Spykerman / The Star Online

Calling it a 1MDB bailout, Tun Mahathir calls for Tabung Haji to terminate the land deal immediately. PERKASA chief Datuk Ibrahim Ali echoes the sentiment.

Image via The Malaysian Insider

Image via Malaysia Chronicle

UMNO Youth chief Khairy Jamaluddin also released a statement demanding explanations from the Finance Ministry in explaining how much 1MDB had paid for the TRX land and what it will do with proceeds from the sale.

They also have some questions for Tabung Haji in regards to the land deal:

Meanwhile, contributors and would-be pilgrims stormed Tabung Haji offices to withdraw their savings and to demand the chairman Datuk Seri Abdul Azeez's resignation

Image via Seth Akmal / The Malaysian Insider

Crucial Facts You Should Know About The Controversial 1MDB-Tabung Haji Land Deal

MPs urge Tabung Haji to keep TRX land to gain greater profits

12 May: No reason to withdraw savings from Tabung Haji as deposits are guaranteed by the government, says PM Najib

Meanwhile, the police are also investigating allegations of mismanagement and power abuse in the 1MDB-Tabung Haji land deal

Last week, when the controversy broke out, UMNO Youth member Saifuddin Abdullah had pointed out that the deal could have been tainted by a conflict of interest, as three key figures in Tabung Haji are also directly involved with the debt-ridden 1MDB

11 May: Tabung Haji will make millions overnight from selling 1MDB land, says Najib

However, it has been reported that that Kumpulan Wang Amanah Pencen (KWAP) is set to buy the land at a price that is more than 15% lower than what Tabung Haji had paid for to house its new headquarters

8 May: On 5 May, a blog called "The Benchmark" released a set of documents detailing an alleged land acquisition deal involving Lembaga Tabung Haji and the 1Malaysia Development Board (1MDB)

While it is not strange for Tabung Haji to be acquiring land as part of its investment plans, the controversy arises from the fact that the pilgrims fund board is purchasing plots of land from the debt-ridden 1MDB

The blog claimed that the pilgrims fund board had purchased two plots of land at the Tun Razak Exchange (TRX) for an unreasonably high price of RM772 million using depositors' money in an attempt to bail out the "scandal-ridden" 1MDB sovereign fund

Based on "insider" information, it was also alleged that the deal had been expedited and approved within two weeks, with Tabung Haji having paid for the first plot of land in full to 1MDB despite a high risk assessment

The post further revealed that Tabung Haji may be paying an average of "48 to 65 times more" for both plots of land as compared to the amount 1MDB had paid for the government-owned TRX land in 2011

Tabung Haji chairman Datuk Seri Abdul Azeez Abdul Rahim had initially denied the purchase when he was asked about it on Twitter

However, Deputy Group Managing Director and CEO Datuk Johan Abdullah later confirmed that a piece of land had been acquired at a discounted price of RM188.5 million instead of RM194 million as was claimed in the blog post

Johan also denied the purchase of the second plot of land known as Signature Tower (Phase 2), explaining that the offer did not match their risk-return requirements and that information from proposal papers do not reflect their final decision

In defence of the land purchase, Johan maintained that it was not a bailout for 1MDB. Rather, it was a sound investment that was made because they wanted "a piece of the action in the development".

Following that, Azeez apologised for the "miscommunication" from his denial tweet, saying that he is actually denying the blog post's claims that Tabung Haji had purchased two plots of land for RM722 million

Tabung Haji has since made a police report in regards to the leaked documents. Police will be investigating the case under the Official Secrets Act.

Calling it a 1MDB bailout, Tun Mahathir calls for Tabung Haji to terminate the land deal immediately. PERKASA chief Datuk Ibrahim Ali echoes the sentiment.

UMNO Youth chief Khairy Jamaluddin also released a statement demanding explanations from the Finance Ministry in explaining how much 1MDB had paid for the TRX land and what it will do with proceeds from the sale.

They also have some questions for Tabung Haji in regards to the land deal:

Meanwhile, contributors and would-be pilgrims stormed Tabung Haji offices to withdraw their savings and to demand the chairman Datuk Seri Abdul Azeez's resignation

In short, being involved with 1MDB isn't exactly a very good idea right now:

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Crucial Facts You Should Know About The Controversial 1MDB-Tabung Haji Land Deal

MPs urge Tabung Haji to keep TRX land to gain greater profits

12 May: No reason to withdraw savings from Tabung Haji as deposits are guaranteed by the government, says PM Najib

Meanwhile, the police are also investigating allegations of mismanagement and power abuse in the 1MDB-Tabung Haji land deal

Last week, when the controversy broke out, UMNO Youth member Saifuddin Abdullah had pointed out that the deal could have been tainted by a conflict of interest, as three key figures in Tabung Haji are also directly involved with the debt-ridden 1MDB

11 May: Tabung Haji will make millions overnight from selling 1MDB land, says Najib

However, it has been reported that that Kumpulan Wang Amanah Pencen (KWAP) is set to buy the land at a price that is more than 15% lower than what Tabung Haji had paid for to house its new headquarters

8 May: On 5 May, a blog called "The Benchmark" released a set of documents detailing an alleged land acquisition deal involving Lembaga Tabung Haji and the 1Malaysia Development Board (1MDB)

While it is not strange for Tabung Haji to be acquiring land as part of its investment plans, the controversy arises from the fact that the pilgrims fund board is purchasing plots of land from the debt-ridden 1MDB

The blog claimed that the pilgrims fund board had purchased two plots of land at the Tun Razak Exchange (TRX) for an unreasonably high price of RM772 million using depositors' money in an attempt to bail out the "scandal-ridden" 1MDB sovereign fund

Based on "insider" information, it was also alleged that the deal had been expedited and approved within two weeks, with Tabung Haji having paid for the first plot of land in full to 1MDB despite a high risk assessment

The post further revealed that Tabung Haji may be paying an average of "48 to 65 times more" for both plots of land as compared to the amount 1MDB had paid for the government-owned TRX land in 2011

Tabung Haji chairman Datuk Seri Abdul Azeez Abdul Rahim had initially denied the purchase when he was asked about it on Twitter

However, Deputy Group Managing Director and CEO Datuk Johan Abdullah later confirmed that a piece of land had been acquired at a discounted price of RM188.5 million instead of RM194 million as was claimed in the blog post

Johan also denied the purchase of the second plot of land known as Signature Tower (Phase 2), explaining that the offer did not match their risk-return requirements and that information from proposal papers do not reflect their final decision

In defence of the land purchase, Johan maintained that it was not a bailout for 1MDB. Rather, it was a sound investment that was made because they wanted "a piece of the action in the development".

Following that, Azeez apologised for the "miscommunication" from his denial tweet, saying that he is actually denying the blog post's claims that Tabung Haji had purchased two plots of land for RM722 million

Tabung Haji has since made a police report in regards to the leaked documents. Police will be investigating the case under the Official Secrets Act.

Calling it a 1MDB bailout, Tun Mahathir calls for Tabung Haji to terminate the land deal immediately. PERKASA chief Datuk Ibrahim Ali echoes the sentiment.

UMNO Youth chief Khairy Jamaluddin also released a statement demanding explanations from the Finance Ministry in explaining how much 1MDB had paid for the TRX land and what it will do with proceeds from the sale. They also have some questions for Tabung Haji in regards to the land deal:

Meanwhile, contributors and would-be pilgrims stormed Tabung Haji offices to withdraw their savings and to demand the chairman Datuk Seri Abdul Azeez's resignation

In short, being involved with 1MDB isn't exactly a very good idea right now:

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UMNO Youth chief Khairy Jamaluddin also released a statement demanding explanations from the Finance Ministry in explaining how much 1MDB had paid for the TRX land and what it will do with proceeds from the sale.

They also have some questions for Tabung Haji in regards to the land deal: